Propagation of Instance Level Permissions
By default, the access level permissions that are assigned on an asset are implicitly propagated to these dependent assets. This behavior is activated when you mark the checkbox Propagate asset permissions in the asset's Advanced Settings. For example, assigning Modify permission on a Service asset propagates the Modify permission to the asset's WSDL, schemas, and so on.
If you do not have permission to assign instance-level permissions to a dependent object, the dependent object will not be modified and a warning message will be issued.